ISM Services PMI
The ISM Services PMI, previously known as the ISM Non-Manufacturing Index, offers insights into the U.S. non-manufacturing sector's economic health. Compiled by the Institute for Supply Management, this report gauges activity in the services sector, including employment, production, new orders, and prices, based on surveys from purchasing managers across various industries.
Understanding the ISM Services Survey
The Services PMI is derived from a national survey of purchasing managers in the non-manufacturing sector. It assesses the business climate and trends within the services industry, measuring factors such as demand, staffing levels, and supply chain conditions. An index reading above 50 indicates expansion in the services sector, while a reading below 50 signals contraction.
How to Interpret the Services PMI
The ISM Services PMI is a critical economic indicator that reflects the health of the non-manufacturing sector. A PMI above 50 suggests that the services sector is growing, which is generally positive for the economy. Conversely, a PMI below 50 indicates contraction, potentially signaling economic challenges ahead.
Release Schedule
Published on the third business day of each month at 10:00 am ET, the Services PMI report provides timely data that helps analysts, investors, and policymakers gauge the overall economic activity and sectoral performance in the non-manufacturing industries.